Auto Dealer Breach of Contract

J

joelvoss

Guest
Jurisdiction
Texas
Hoping to get some advice on which way to go, and here's what happened to me. I reside in Tx, and recently bought a used 2016 Toyota Tundra from a Dealer in the State. Due to the distance being over 500 miles I agreed to purchase the vehicle site unseen based on the salespersons description. The salesperson provided pictures, and video which showed no body damage, dings, or hail damage. I spoke numerous times on the phone with the individual always expressing my concern, and then would follow up with emails. In the video the salesman can be heard saying the vehicle has no hail, or other damage what so ever. I even have 2 emails from him where he assured me the same thing in writing.

Fast forward to the delivery after signing the paperwork. Vehicle was delivered and we immediately noticed damage to the rear bumper. Called the salesperson and he said it must have happened when they were detailing it. We asked him why he delivered it and wanted to know why we weren't given a heads up. I went back to immediately review the pictures and video. In the pictures he left the tail gate open so as to hide the damage. In the video, the sneaky devil filmed it from an angle so the damage could not be seen, however towards the end he briefly in a matter of 2 seconds panned over the bumper. Using today's technology I was able to review frame by frame and see that he did know there was existing damage. Damage estimate is $789.00

But wait, there's more. What could be better than that you ask. Well, let me tell you... I also have $4,555 worth of hail damage to the vehicle. Yeah, I was pretty sick after hearing that. I'd just spent close to $50,000 and now find out that the vehicle has already been repaired on the right side, plus the hood had probably been replaced. The appraiser said that based on what he saw on the cab of the truck it had to have been softball sized hail, and there was no way the hood wasn't replaced if the cab had sustained that type of damage.

I signed a contract, and gave the dealer a check. At that point, is Condition Precedent established? Based on emails, and video testimony does the Dealer have an obligation to deliver a vehicle free of damage? With the condition that the vehicle was delivered to me is the Dealer therefore in a Breach of Contract? As I mentioned, the salesman was very clear and specific there was zero hail damage, or any other damage at all to the vehicle other than a few scuffs in the bed of the truck.

I think I have a Deceptive Trade case, but what I did do is issue a stop payment on the check to the Dealer, and called the lending institution requesting they not fund my loan. The lender said they would not fund the loan unless I gave them verbal authorization, and I know that by putting a stop pay on the ck they could technically come at me for a breach of contract. I'm in the process of sending out a 60 day demand letter which I will have out tomorrow, and the vehicle is not being driven. I've got it parked in my garage hoping they'll come pick it up.

Signed,
Stupid, and No Longer Riding in Style
 
Never buy a motor vehicle, a home, or major purchase sight unseen.

You have a mess.

A message board can't be of much use to you.

Sorry, you'll need to shell out about $5,000, maybe $10,000, in attempt to clean up your mess. You must retain an attorney in your county, tomorrow, at least start discussing your issues with one or two.

You have placed yourself at great civil and/or criminal exposure.

Notice I used attempt. Stopping payment on that check might bring you a criminal law charge, mate.

Your use of the words "condition precedent" make absolutely no legal sense, and "condition precedent" has nothing to do with any potential remedy.

Before you acted, you may have had a fraud case. I have no idea what monster you may have created.

Good luck.
 
Dear Stupid, and No Longer Riding in Style.

I agree with Army Judge. You have big trouble ahead. Read your contract. I suspect that it says you bought the car AS IS with no warranty or guarantee other than the manufacturer's warranty.

I can almost guarantee that the contract has no reference to condition and also that the contract says that the complete agreement is within the contract and whatever was "said" outside the contract doesn't count.

What the dealer "told" you is likely to be irrelevant because you got videos and saw the car and decided to buy it for almost $50,000 without going to see if first. Yikes.

Now you've stopped payment on the check which, at the very least, is YOU breaching the contract and subjecting you to a nice big lawsuit. It's not the dealer who is in breach here.

I think you shot yourself in the foot big time. Your demand to the dealer is meaningless. He'll come get the car probably and then sell it at auction for considerably less than you paid for it and will either sue you for the difference or send you to collections. Either way it trashes your credit and good luck getting financing for your next car purchase.

Oh, one more thing. Your contract probably has a bilateral attorney fee provision which means that you pay the dealer's attorney fees if he wins the lawsuit. $$$$$
 
Follow up, and the ordeal is over. Yesterday I called the indirect lender again to verify they were not going to cash the contract, and then immediately put a freeze on all 3 credit reports. I then knew the dealer would not be able to cash the contract, and would try to have the loan approved through another lender similar to a "spot delivery". After that, I went to the county registration office and had them run a vin search for $2 so that I could have the previous owners information. With that and Google I was able to speak with the previous owner. Confirmed he did the bumper damage, and he had traded the vehicle with no hail damage. That meant the dealer incurred the hail damage, and hid that fact from me. Apparently, under the deceptive trade act that's a No No. Since they could not cash the contract, and the only way to honor it would be full recourse I offered to send a cashier's check for the stop payment with my demand letter. A demand letter must be done in order to cure the situation prior to a law suit. It gives the other party 60 days.
Long story short. Late yesterday I was refunded 100% of my money back for down payment, transport cost, stop pay, and they are paying to have the vehicle transported back. They asked they I drop it off at a local dealer, and I did so after being released in writing from all obligations. I must thank my wife who is well versed in contracts.
 
Congratulations. It's rare to see this kind of success. Could have just as easily gone the other way.

Meantime, did you enjoy the experience? I'm guessing "no."

Would you like this to happen to you in the future? I'm guessing "no."

Then don't go buying cars (or anything else) without examining them up close and personal.
 
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